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Special FeatureCreating Shared Value (CSV Initiatives)

- Solving Social Issues through Business -

Deal with new risks

P. 67

Create a safer mobility society

P. 68

Strive for resilient community development

P. 69

Contribute to climate change mitigation and adaptation

PP. 28-33

PP. 70-71

Strive to improve the sustainability of natural capital

P. 72

Work toward the realization of “leaving no one behind”

P. 7306

04・05

01

02

03

07

At the Silicon Valley Start-Up Pitch

1

Economic impact on the Group

● Development of new products and expansion of services in the cybersecurity field

● Growth in the insurance market associated with the development of an advanced information society

Impact on society

● Prevention of cyber risk and swift recovery from damage caused by cyberattacks

● Stabilization of corporate management by providing cyber insurance

Social issues

Despite growing cyber risk among SMEs, SMEs do not have sufficient knowledge and have not made sufficient preparations

Solutions

Convey knowledge and preparations for cyber risk in an easy-to-understand manner, and provide insurance in the event of a “cyber attack incident”

uring fiscal 2019, we were entrusted with the Aichi Prefecture Cyber Security Support Team Demonstration Project organized by the

Ministry of Economy, Trade and Industry and the Information-technology Promotion Association, Japan (IPA). This opportunity allowed us to encounter the actual situation of cyber risk among SMEs and the awareness of those involved, thereby serving as a valuable learning experience. Many SMEs believe that cyberattacks are limited to large companies and IT companies, and thus tend to feel that they are an unlikely target. After installing an inspection system, however, the demonstration project revealed that one SME was already in fact receiving cyberattacks. Despite its exposure to risk, this SME was neither knowledgeable of nor had made sufficient preparations for such. Therefore cybersecurity countermeasures for SMEs must include services that deepen the awareness and understanding of risk in advance of insurance products. Although the Group provides cyber risk diagnosis, targeted e-mail attack training and other services, we continuously seek out new collaborations with outside experts to evolve these into more effective services. Upon interviewing many start-ups in Silicon Valley in January 2020, I (Onizawa) fully recognized that the cybersecurity industry is making rapid advances, as well as the importance of always keeping an antenna out for advanced technologies and services. However, cyber risk is not just an issue of technology. In many cases, actual risk is caused by human error. What

Despite the continuously growing threat of cyber risk that stems from the evolution of today’s information society, research by the General Insurance Association of Japan indicates that one in four SMEs has not taken action against cyberattacks. The emergence of cyber risk, however, can have a major impact on business activities and can even imperil the continued existence of companies.During fiscal 2019, the MS&AD Insurance Group expanded the Groupwide Cyber Security Liaison Council to develop and provide products and services tailored to the actual situation of cyber risk among SMEs.

Providing cybersecurity countermeasures to SMEs

was new for me was that influential start-ups, in addition to holding advanced technologies, combine these with technologies and software that convey cyber risk in an easy-to-understand manner to help those involved understand the situation. Unlike cybersecurity service companies, we have an ability to help our customers through insurance in the event of an “actual incident.” Although I (Suzuki) was only recently appointed to this department , for this reason I intend to place importance on terminology that anyone can easily understand and thoroughly convey risk by developing services tailored to the needs and perspectives of customers. At the same time, I intend to focus on promoting cybersecurity that includes the provision of insurance products.

In 2020, today’s information technology society has entered a new phase with the emergence of COVID-19. Cyber risk has grown beyond that of the past following the rapid introduction of telecommuting among companies, so we launched the Comprehensive Telecommuting Compensation Insurance in May, which allows SMEs to utilize telecommuting safely. We will continue to provide support so that SMEs can enjoy the maximum benefits of a society in which information technology is undergoing rapid evolution and can continue their business activities in a safe, secure manner.

Deal with new risks

01

D

Kei Onizawa

Mitsui Sumitomo InsuranceCyber Risk Security Team, Casualty Underwriting Department Deputy Manager

After joining the company in 2011, he served in the Corporate Production Section of Hamamatsu Branch and was later placed in charge of underwriting liability insurance in the Casualty Underwriting Department. He has held his current position since April 2019.

Yuki Suzuki

Aioi Nissay Dowa InsuranceCyber Insurance Underwriting Section, Casualty Underwriting Department Deputy Manager

After joining the company in 2008, he was assigned to the Accounting Department and was later seconded to a Group company involved in Internet insurance. He has held his current position since April 2020.

With the Sustainable Development Goals (SDGs) as our leading marks for putting our value creation story into practice, the MS&AD Insurance Group is further advancing efforts to create shared value (CSV initiatives) and working to realize a resilient and sustainable society.

Related SDGs 　　： Industry, innovation and infrastructure9

Support “good health and longevity”

066 MS&AD INSURANCE GROUP HOLDINGS 067INTEGRATED REPORT 2020

Special FeatureCreating Shared Value (CSV Initiatives)

- Solving Social Issues through Business -

Deal with new risks

P. 67


P. 68


P. 69

Contribute to climate change mitigation and adaptation

PP. 28-33

PP. 70-71


P. 72


P. 7306

04・05

01

02

03

07

At the Silicon Valley Start-Up Pitch

1


● Development of new products and expansion of services in the cybersecurity field

● Growth in the insurance market associated with the development of an advanced information society

Impact on society

● Prevention of cyber risk and swift recovery from damage caused by cyberattacks

● Stabilization of corporate management by providing cyber insurance

Social issues

Despite growing cyber risk among SMEs, SMEs do not have sufficient knowledge and have not made sufficient preparations

Solutions

Convey knowledge and preparations for cyber risk in an easy-to-understand manner, and provide insurance in the event of a “cyber attack incident”

uring fiscal 2019, we were entrusted with the Aichi Prefecture Cyber Security Support Team Demonstration Project organized by the

Ministry of Economy, Trade and Industry and the Information-technology Promotion Association, Japan (IPA). This opportunity allowed us to encounter the actual situation of cyber risk among SMEs and the awareness of those involved, thereby serving as a valuable learning experience. Many SMEs believe that cyberattacks are limited to large companies and IT companies, and thus tend to feel that they are an unlikely target. After installing an inspection system, however, the demonstration project revealed that one SME was already in fact receiving cyberattacks. Despite its exposure to risk, this SME was neither knowledgeable of nor had made sufficient preparations for such. Therefore cybersecurity countermeasures for SMEs must include services that deepen the awareness and understanding of risk in advance of insurance products. Although the Group provides cyber risk diagnosis, targeted e-mail attack training and other services, we continuously seek out new collaborations with outside experts to evolve these into more effective services. Upon interviewing many start-ups in Silicon Valley in January 2020, I (Onizawa) fully recognized that the cybersecurity industry is making rapid advances, as well as the importance of always keeping an antenna out for advanced technologies and services. However, cyber risk is not just an issue of technology. In many cases, actual risk is caused by human error. What

Despite the continuously growing threat of cyber risk that stems from the evolution of today’s information society, research by the General Insurance Association of Japan indicates that one in four SMEs has not taken action against cyberattacks. The emergence of cyber risk, however, can have a major impact on business activities and can even imperil the continued existence of companies.During fiscal 2019, the MS&AD Insurance Group expanded the Groupwide Cyber Security Liaison Council to develop and provide products and services tailored to the actual situation of cyber risk among SMEs.

Providing cybersecurity countermeasures to SMEs

was new for me was that influential start-ups, in addition to holding advanced technologies, combine these with technologies and software that convey cyber risk in an easy-to-understand manner to help those involved understand the situation. Unlike cybersecurity service companies, we have an ability to help our customers through insurance in the event of an “actual incident.” Although I (Suzuki) was only recently appointed to this department , for this reason I intend to place importance on terminology that anyone can easily understand and thoroughly convey risk by developing services tailored to the needs and perspectives of customers. At the same time, I intend to focus on promoting cybersecurity that includes the provision of insurance products.

In 2020, today’s information technology society has entered a new phase with the emergence of COVID-19. Cyber risk has grown beyond that of the past following the rapid introduction of telecommuting among companies, so we launched the Comprehensive Telecommuting Compensation Insurance in May, which allows SMEs to utilize telecommuting safely. We will continue to provide support so that SMEs can enjoy the maximum benefits of a society in which information technology is undergoing rapid evolution and can continue their business activities in a safe, secure manner.

Deal with new risks

01

D

Kei Onizawa

Mitsui Sumitomo InsuranceCyber Risk Security Team, Casualty Underwriting Department Deputy Manager

After joining the company in 2011, he served in the Corporate Production Section of Hamamatsu Branch and was later placed in charge of underwriting liability insurance in the Casualty Underwriting Department. He has held his current position since April 2019.

Yuki Suzuki

Aioi Nissay Dowa InsuranceCyber Insurance Underwriting Section, Casualty Underwriting Department Deputy Manager

After joining the company in 2008, he was assigned to the Accounting Department and was later seconded to a Group company involved in Internet insurance. He has held his current position since April 2020.

With the Sustainable Development Goals (SDGs) as our leading marks for putting our value creation story into practice, the MS&AD Insurance Group is further advancing efforts to create shared value (CSV initiatives) and working to realize a resilient and sustainable society.

Related SDGs 　　： Industry, innovation and infrastructure9


Creating Shared Value

Special FeatureCEO Message Who We Are Special Report Our Way AppendixOur Platform Data Section


Social issues

Falling birthrate and aging population, as well as the concentration of populations in urban areas, are accelerating the decline of regional economies

● Expansion of opportunities to provide insurance through regional economic revitalization

● Expansion of the sales market by creating regional networks

● Realization of resilient community development via job creation and strengthened regional industries

Solutions

Revitalize regional economies based on support for sustainable growth among local companies

was assigned to Nagano Branch in April 2018, at the time which I started to experience global trends like the flourishing of ESG investment,

which demands long-term economic growth over short-term profits. Although this movement had yet to penetrate within SMEs, I felt that if excellent companies in Nagano study the SDGs and become vigorous leaders, the regional economy would be energized and regional revitalization would take off. At that time, I heard that the SDGs Consortium was going to be launched in Nagano, I offered my support because I certainly wanted to participate in and support this initiative. Although I initially joined as an observer, as a result of cooperating with many departments within the Group that held the same motivation as myself and actively proposing ideas at each meeting, I earned the trust of the Kanto Bureau of Economy, Trade and Industry and Nagano Prefectural Government to become a formal member.

Nagano Prefecture was considering a system to support companies tackling the SDGs and had been studying the registration requirements. Initially, the Prefecture primarily discussed business opportunities that contribute to the SDGs, but from an insurance company’s standpoint, I was able to contribute to creating the requirements for the system by pressing the need to focus on the business risks in a society that demands the SDGs. And I was able to experience the joy of creating a regional revitalization model based on the SDGs as a result of the overlapping desires of the Japanese Government to create a model for revitalizing regional economies; as well as financial

A sustainable regional economy with sufficient local employment and wealth reproduction in addition to being resilient to natural disasters is essential for resilient community development. Japan promotes policies for regional revitalization based on the “Act on Overcoming Population Decline and Vitalizing the Local Economy in Japan” under this concept. After participating in the NAGANO×KANTO Regional SDGs Consortium, held as a model project by the Kanto Bureau of Economy, Trade and Industry in 2018, Nagano Branch of Mitsui Sumitomo Insurance and InterRisk Research & Consulting have engaged in supporting the system.

Supporting Nagano Prefecture SDG-Promoting Companies Registration System

institutions, commerce groups and the Prefecture helping to raise the competitiveness of companies in Nagano; and our Group undertakeing CSV initiatives using the SDGs as leading marks. In 2019, along with four financial institutions in Nagano, we received the Minister of State for the Promotion of Overcoming Population Decline and Vitalizing Local Economy in Japan Award for this initiative as “‘Signature Initiative Examples’ by Financial Institutions Contributing to Regional Revitalization.”

As of May 31, 2020, approximately 380 companies in Nagano had registered as SDG-Promoting Companies. The initiative has led to increasing opportunities for registered companies to share information with each other and to generate new business opportunities. With our support, if the program provides opportunities to recognize the SDGs and this helps to launch new businesses among local companies, we will be able to contribute to regional revitalization and see a demand for insurance that can support their business. In this way, I feel that working closely together with local people and harvesting the business achievements together is exactly CSV (creating shared value).

Advancing these kinds of initiatives and active communication will get young, talented human resources from the region to find a job in the local areas. Moreover, regional revitalization requires local companies to be more competitive and regional economies to be energized. Along with this, we will seek our growth together.

I


1

03

n 2016, we established Toyota Insurance Management Solutions USA, LLC (TIMS), which provides telematics automobile

insurance services for Toyota-connected vehicles in the United States, in cooperation with Toyota Financial Services Corporation and Toyota Motor Corporation. TIMS analyzes mileage driven, driving hours, driving time, hash braking & acceleration and other telematics data from connected vehicles and provides the results to partner insurance companies. In 2019, we began collaborating with Progressive Casualty Company, one of the largest telematics insurance companies, and, together with Nationwide Mutual Insurance Company, launched BrightDrive, a usage-based telematics automobile insurance for Toyota-connected vehicles.

BrightDrive uses driving data collected from the connected vehicles to provide a discount based on how safely the customer drives. We feel this concept contributes to realizing a safe & secure mobility society because customers who practice safe driving help reduce traffic accidents. Moreover, this insurance provides high-quality repairs using Toyota Genuine Parts in an accident, which makes for a Win-Win-Win product for customers, Toyota (including Toyota dealers) and TIMS. Another major feature is that we have built a fully online insurance solicitation system for BrightDrive.

I am in charge of deploying and promoting telematics automobile insurance and services for Toyota vehicle owners, teaming up with local staff.

Against the backdrop of rapid innovation in today’s mobility society, new driving technologies are being researched and developed. Aioi Nissay Dowa Insurance focuses on providing and developing telematics insurance products and services based on big data, both domestically and internationally, that address today’s new mobility society. We launched the Telematics Mobility Service Project within the company to develop and provide new insurance products and services that leverage telematics technologies.

Deploying a telematics business in the United States

I think it will be necessary to accurately understand new risks and customer needs, and to ensure that autonomous vehicles, for example, are legally and socially acceptable. Moreover, it will be important to deepen our expertise through contributions to “safe, secure, comfortable mobility services” as one of the core elements of Smart Cities and Super Cities, apply this expertise, and develop and provide insurance products and services that can contribute to “lifestyles, health and community development.” I also feel there will be even greater demands than before for providing appropriate risk coverage that utilizes objective data to more fully and accurately determine uncertain risks. I will challenge to develop new insurance products with an awareness of our company policy, which is to deploy globally as a front runner in the telematics and mobility service business by continuing to research ways of applying new technologies like telematics and leveraging the technologies we have acquired thus far.

I


02

Shiro Katsumata

Mitsui Sumitomo InsuranceNagano Branch and Second Nagano Sub-Branch Manager

After joining the company in 1994, he worked in the Retail Sales and Sales Planning departments, was seconded to the Cabinet Office of Japan and served in the Corporate Planning Department. He has held his current position since April 2018.

Social issues

The need to address new risk associated with technological innovation related to mobility and communications is becoming increasingly in-demand

Solutions

Provide new insurance and services by utilizing and researching the latest information technologies and driving behavior data

● Reduction in claims payments because of fewer traffic accidents● Identification of insurance needs corresponding to new technologies

● Contribution to a safe, secure mobility society by preventing and reducing traffic accidents and raising safe driving awareness among policy holders

● Reduction in the burden on customers through insurance premium discounts

Nagano SDGs Market Development Project Report Meeting in February 2020

Related SDGs 　　： Good health and well-being

　　　　　　　　： Sustainable cities and communities

311

Related SDGs 　　： Decent work and economic growth


811

Keiichi Kato

Aioi Nissay Dowa InsuranceTelematics and Mobility Services Business Development Department(seconded to Aioi Nissay Dowa InsuranceServices USA Corp.) Deputy Manager

After joining the company in 2010, he was involved in the response to the Great East Japan Earthquake at the Sendai Branch and was later seconded to Toyota Connected. He has held his current position since April 2019.


Impact on society


Impact on society

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Social issues

Falling birthrate and aging population, as well as the concentration of populations in urban areas, are accelerating the decline of regional economies

● Expansion of opportunities to provide insurance through regional economic revitalization

● Expansion of the sales market by creating regional networks

● Realization of resilient community development via job creation and strengthened regional industries

Solutions

Revitalize regional economies based on support for sustainable growth among local companies

was assigned to Nagano Branch in April 2018, at the time which I started to experience global trends like the flourishing of ESG investment,

which demands long-term economic growth over short-term profits. Although this movement had yet to penetrate within SMEs, I felt that if excellent companies in Nagano study the SDGs and become vigorous leaders, the regional economy would be energized and regional revitalization would take off. At that time, I heard that the SDGs Consortium was going to be launched in Nagano, I offered my support because I certainly wanted to participate in and support this initiative. Although I initially joined as an observer, as a result of cooperating with many departments within the Group that held the same motivation as myself and actively proposing ideas at each meeting, I earned the trust of the Kanto Bureau of Economy, Trade and Industry and Nagano Prefectural Government to become a formal member.

Nagano Prefecture was considering a system to support companies tackling the SDGs and had been studying the registration requirements. Initially, the Prefecture primarily discussed business opportunities that contribute to the SDGs, but from an insurance company’s standpoint, I was able to contribute to creating the requirements for the system by pressing the need to focus on the business risks in a society that demands the SDGs. And I was able to experience the joy of creating a regional revitalization model based on the SDGs as a result of the overlapping desires of the Japanese Government to create a model for revitalizing regional economies; as well as financial

A sustainable regional economy with sufficient local employment and wealth reproduction in addition to being resilient to natural disasters is essential for resilient community development. Japan promotes policies for regional revitalization based on the “Act on Overcoming Population Decline and Vitalizing the Local Economy in Japan” under this concept. After participating in the NAGANO×KANTO Regional SDGs Consortium, held as a model project by the Kanto Bureau of Economy, Trade and Industry in 2018, Nagano Branch of Mitsui Sumitomo Insurance and InterRisk Research & Consulting have engaged in supporting the system.

Supporting Nagano Prefecture SDG-Promoting Companies Registration System

institutions, commerce groups and the Prefecture helping to raise the competitiveness of companies in Nagano; and our Group undertakeing CSV initiatives using the SDGs as leading marks. In 2019, along with four financial institutions in Nagano, we received the Minister of State for the Promotion of Overcoming Population Decline and Vitalizing Local Economy in Japan Award for this initiative as “‘Signature Initiative Examples’ by Financial Institutions Contributing to Regional Revitalization.”

As of May 31, 2020, approximately 380 companies in Nagano had registered as SDG-Promoting Companies. The initiative has led to increasing opportunities for registered companies to share information with each other and to generate new business opportunities. With our support, if the program provides opportunities to recognize the SDGs and this helps to launch new businesses among local companies, we will be able to contribute to regional revitalization and see a demand for insurance that can support their business. In this way, I feel that working closely together with local people and harvesting the business achievements together is exactly CSV (creating shared value).

Advancing these kinds of initiatives and active communication will get young, talented human resources from the region to find a job in the local areas. Moreover, regional revitalization requires local companies to be more competitive and regional economies to be energized. Along with this, we will seek our growth together.

I


1

03

n 2016, we established Toyota Insurance Management Solutions USA, LLC (TIMS), which provides telematics automobile

insurance services for Toyota-connected vehicles in the United States, in cooperation with Toyota Financial Services Corporation and Toyota Motor Corporation. TIMS analyzes mileage driven, driving hours, driving time, hash braking & acceleration and other telematics data from connected vehicles and provides the results to partner insurance companies. In 2019, we began collaborating with Progressive Casualty Company, one of the largest telematics insurance companies, and, together with Nationwide Mutual Insurance Company, launched BrightDrive, a usage-based telematics automobile insurance for Toyota-connected vehicles.

BrightDrive uses driving data collected from the connected vehicles to provide a discount based on how safely the customer drives. We feel this concept contributes to realizing a safe & secure mobility society because customers who practice safe driving help reduce traffic accidents. Moreover, this insurance provides high-quality repairs using Toyota Genuine Parts in an accident, which makes for a Win-Win-Win product for customers, Toyota (including Toyota dealers) and TIMS. Another major feature is that we have built a fully online insurance solicitation system for BrightDrive.

I am in charge of deploying and promoting telematics automobile insurance and services for Toyota vehicle owners, teaming up with local staff.

Against the backdrop of rapid innovation in today’s mobility society, new driving technologies are being researched and developed. Aioi Nissay Dowa Insurance focuses on providing and developing telematics insurance products and services based on big data, both domestically and internationally, that address today’s new mobility society. We launched the Telematics Mobility Service Project within the company to develop and provide new insurance products and services that leverage telematics technologies.

Deploying a telematics business in the United States

I think it will be necessary to accurately understand new risks and customer needs, and to ensure that autonomous vehicles, for example, are legally and socially acceptable. Moreover, it will be important to deepen our expertise through contributions to “safe, secure, comfortable mobility services” as one of the core elements of Smart Cities and Super Cities, apply this expertise, and develop and provide insurance products and services that can contribute to “lifestyles, health and community development.” I also feel there will be even greater demands than before for providing appropriate risk coverage that utilizes objective data to more fully and accurately determine uncertain risks. I will challenge to develop new insurance products with an awareness of our company policy, which is to deploy globally as a front runner in the telematics and mobility service business by continuing to research ways of applying new technologies like telematics and leveraging the technologies we have acquired thus far.

I


02

Shiro Katsumata

Mitsui Sumitomo InsuranceNagano Branch and Second Nagano Sub-Branch Manager

After joining the company in 1994, he worked in the Retail Sales and Sales Planning departments, was seconded to the Cabinet Office of Japan and served in the Corporate Planning Department. He has held his current position since April 2018.

Social issues

The need to address new risk associated with technological innovation related to mobility and communications is becoming increasingly in-demand

Solutions

Provide new insurance and services by utilizing and researching the latest information technologies and driving behavior data

● Reduction in claims payments because of fewer traffic accidents● Identification of insurance needs corresponding to new technologies

● Contribution to a safe, secure mobility society by preventing and reducing traffic accidents and raising safe driving awareness among policy holders

● Reduction in the burden on customers through insurance premium discounts

Nagano SDGs Market Development Project Report Meeting in February 2020

Related SDGs 　　： Good health and well-being


311

Related SDGs 　　： Decent work and economic growth


811

Keiichi Kato

Aioi Nissay Dowa InsuranceTelematics and Mobility Services Business Development Department(seconded to Aioi Nissay Dowa InsuranceServices USA Corp.) Deputy Manager

After joining the company in 2010, he was involved in the response to the Great East Japan Earthquake at the Sendai Branch and was later seconded to Toyota Connected. He has held his current position since April 2019.


Impact on society


Impact on society

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Related SDGs 　　： Good health and well-being3Related SDGs　　： Good health and well-being3


Impact on society

lthough public pensions are raised as one method for supporting prolonged post-retirement lives in anticipation of an era in

which average life spans could reach 100 years, I feel there are many cases where individuals will need to dispose of financial assets to make up for shortages in retirement funds that cannot be fully covered by public pensions. However, we cannot predict how long we will live. Therefore, many people face uncertainty (longevity risk), for example, questions over how much funding they should prepare and what pace of disposal will cause financial assets to run dry. Providing products and services that cover this kind of longevity risk is something I feel connects to putting the MS&AD Insurance Group’s value creation story into practice. We worked to develop these products in the following two stages.

First, we developed an individual annuity insurance with a new structure that addresses longevity risk. Specifically, we developed a new type of individual annuity insurance that adopts a tontine system (tontine annuity) as a structure to effectively prepare retirement funds even at low interest rates.

Next, we captured the different ways in which people spend their post-retirement lives, their value systems and their diversifying needs by expanding this tontine annuity into “ASHITA NO YOROKOBI2,” a comprehensive annuity product consisting of four courses.

As we approach an era in which average life spans could reach 100 years, in addition to prolonging healthy life expectancy, extending asset longevity (the duration asset holders can live without financial restrictions) is an important part of preparing for longevity risk. Mitsui Sumitomo Primary Life Insurance is actively working to increase annuity payments by enhancing the tontine system,* as well as to develop and provide tontine annuities that cover longevity risk, as a means of ensuring customers can live more fulfilling post-retirement lives.

Providing tontine annuities that cover longevity risk in anticipation of an era in which average life spans could reach 100 years

Specifically, the “Amount receivable oriented course” is designed to provide a larger annuity amount, the “Pre-pension benefit/whole life death protection course” allows for the annuity to be received while securing assets to be passed on to surviving family members, the “Fulfillment at maturity course” is designed to increase the annuity capital at the end of the deferment period and the “Target course” increases via compound interest to ensure investment results without overlooking the timing. Customers can choose from among these four courses to meet their different needs for “receiving,” “increasing” or “passing on.”

Upon developing these tontine annuities, we selected product content that captures different customer needs based on exchanges of opinions between relevant parties, both from inside and outside the company, and insurance agents. Through tontine annuities, we hope that as many customers as possible achieve more fulfilling post-retirement lives.

I will continue to work toward realizing our value creation story by providing products and services for new systems that support the “good health and longevity” of customers.

After being seconded to a medical organization in my sixth year at the company, I became involved in development, surveys and

research into services related to healthcare and the elderly. Although I had already recognized healthcare and aging as social issues since that time, I now feel that considering these in combination with business environment change such as digitalization will be critical for the future.

As Japan’s society ages, an increasing number of people are displaying mild cognitive impairment (MCI), an early stage of dementia. Despite active research into pharmaceuticals designed to treat and prevent dementia, however, a specific medicine has yet to emerge. Therefore, it is felt that one effective measure for preventing symptoms from worsening is to appropriately address the situation early on at the MCI stage. Thus, technologies are being developed to detect MCI early on and to prevent aggravation. Against this backdrop, supporting the practical use of those treatments that rely on voice, sight, smell and other senses, and that can be easily used by anyone, will connect to “identify and inform on risks” as part of the Group’s value creation story. This is what I see as the role of the insurance industry.

Since fiscal 2018, the MS&AD Insurance Group has collaborated with the University of Tokyo Center of Innovation (COI), a hub for a “Self-Managing Healthy Society,” to advance initiatives for realizing a “Sustainable, Healthy Longevity Society.” In

Implementing initiatives to detect dementia early on through open innovation

September 2019, we initiated joint research with the University of Tokyo on developing services that provide dementia prevention measures and have already begun to detect signs of MCI using voice based on the technology developed by the University of Tokyo COI.

With the goal of developing an algorithm to identify cognitive levels based on voice, this joint research leverages the Group and our network of Group companies in working to collect and analyze the voice data, etc., of elderly persons that are essential for this research. In the future, we aim to commercialize the technology born through this project and put it to practical use in society.

Currently, I am taking the opportunity to gain a new perspective on aging societies from the stance of business, for example, by participating in the Society for Applied Gerontology-Japan. There is now a shift from extending healthy longevity and care to prevention, as well as innovations in the use of healthcare data, for example. But I intend to capture these changes as business opportunities and to become involved in industry, government and academia open innovation while at the same time providing products and services that support society.

A



04 05

1

Masako Kohei Masamoto Yamaguchi

Mitsui Sumitomo Primary Life InsuranceProduct Group, Product and Marketing Department General Manager

After joining Mitsui Sumitomo Insurance (current name) in 1993, she was responsible for product development, etc., in various underwriting departments and spent two years in the Production Department. She has held her current position since April 2014.

*Based on a system that reduces benefits paid to the deceased and transfers the reduced amount to the annuities of the living, those who live longer receive a larger annuity during their lives.

Mitsui Sumitomo Aioi Life InsuranceProduct Development Group, Product DepartmentManager

After joining Mitsui Sumitomo Insurance (current name) in 1988, he worked for InterRisk Research & Consulting and the Underwriting Department at Mitsui Sumitomo Insurance. He has held his current position since April 2016.

Social issues

Demand to address longevity risk and lifestyle diversification coinciding with longer average life spans

Solutions

Support asset formation for an era in which average life spans could reach 100 years, and provide products and services corresponding to funding needs

● Expansion of the sales market from providing products and services that capture diversifying needs

● Greater presence in OTC bank sales

● Securing financial assets and extension of asset longevity that helps provide a sense of post-retirement security

● More active seniors living fulfilling post-retirement lives


Impact on societySocial issues

A growing number of elderly persons with dementia as society ages

Solutions

Provide support to detect early signs of cognitive decline and prevent functional decline

● Development of new insurance and services based on an industry, government and academia network

● Strengthened customer base because of regional revitalization

● A greater number of elderly persons enjoying independent lifestyles

● Revitalization of regional society● Lower future medical expenses and nursing care expenses

Elderly Data Collection Facility(Fureai Do-Life Services)

Japan’s society is aging at a pace unseen anywhere else in the world. Along with the continuous growth in the proportion of the total population over the age of 65, extending the healthy life expectancy associated with the increasing number of those over the age of 75 is also becoming an issue. The number of elderly persons with dementia has been growing steadily, and it is estimated that by 2025 nearly 7 million elderly persons, or roughly one in five, will have dementia. To realize a sustainable society within this environment, hopes are being placed on services that detect early signs of cognitive decline and provide measures to prevent functional decline at the stage before elderly persons develop dementia.


Related SDGs 　　： Good health and well-being3Related SDGs　　： Good health and well-being3


Impact on society

lthough public pensions are raised as one method for supporting prolonged post-retirement lives in anticipation of an era in

which average life spans could reach 100 years, I feel there are many cases where individuals will need to dispose of financial assets to make up for shortages in retirement funds that cannot be fully covered by public pensions. However, we cannot predict how long we will live. Therefore, many people face uncertainty (longevity risk), for example, questions over how much funding they should prepare and what pace of disposal will cause financial assets to run dry. Providing products and services that cover this kind of longevity risk is something I feel connects to putting the MS&AD Insurance Group’s value creation story into practice. We worked to develop these products in the following two stages.

First, we developed an individual annuity insurance with a new structure that addresses longevity risk. Specifically, we developed a new type of individual annuity insurance that adopts a tontine system (tontine annuity) as a structure to effectively prepare retirement funds even at low interest rates.

Next, we captured the different ways in which people spend their post-retirement lives, their value systems and their diversifying needs by expanding this tontine annuity into “ASHITA NO YOROKOBI2,” a comprehensive annuity product consisting of four courses.

As we approach an era in which average life spans could reach 100 years, in addition to prolonging healthy life expectancy, extending asset longevity (the duration asset holders can live without financial restrictions) is an important part of preparing for longevity risk. Mitsui Sumitomo Primary Life Insurance is actively working to increase annuity payments by enhancing the tontine system,* as well as to develop and provide tontine annuities that cover longevity risk, as a means of ensuring customers can live more fulfilling post-retirement lives.

Providing tontine annuities that cover longevity risk in anticipation of an era in which average life spans could reach 100 years

Specifically, the “Amount receivable oriented course” is designed to provide a larger annuity amount, the “Pre-pension benefit/whole life death protection course” allows for the annuity to be received while securing assets to be passed on to surviving family members, the “Fulfillment at maturity course” is designed to increase the annuity capital at the end of the deferment period and the “Target course” increases via compound interest to ensure investment results without overlooking the timing. Customers can choose from among these four courses to meet their different needs for “receiving,” “increasing” or “passing on.”

Upon developing these tontine annuities, we selected product content that captures different customer needs based on exchanges of opinions between relevant parties, both from inside and outside the company, and insurance agents. Through tontine annuities, we hope that as many customers as possible achieve more fulfilling post-retirement lives.

I will continue to work toward realizing our value creation story by providing products and services for new systems that support the “good health and longevity” of customers.

After being seconded to a medical organization in my sixth year at the company, I became involved in development, surveys and

research into services related to healthcare and the elderly. Although I had already recognized healthcare and aging as social issues since that time, I now feel that considering these in combination with business environment change such as digitalization will be critical for the future.

As Japan’s society ages, an increasing number of people are displaying mild cognitive impairment (MCI), an early stage of dementia. Despite active research into pharmaceuticals designed to treat and prevent dementia, however, a specific medicine has yet to emerge. Therefore, it is felt that one effective measure for preventing symptoms from worsening is to appropriately address the situation early on at the MCI stage. Thus, technologies are being developed to detect MCI early on and to prevent aggravation. Against this backdrop, supporting the practical use of those treatments that rely on voice, sight, smell and other senses, and that can be easily used by anyone, will connect to “identify and inform on risks” as part of the Group’s value creation story. This is what I see as the role of the insurance industry.

Since fiscal 2018, the MS&AD Insurance Group has collaborated with the University of Tokyo Center of Innovation (COI), a hub for a “Self-Managing Healthy Society,” to advance initiatives for realizing a “Sustainable, Healthy Longevity Society.” In

Implementing initiatives to detect dementia early on through open innovation

September 2019, we initiated joint research with the University of Tokyo on developing services that provide dementia prevention measures and have already begun to detect signs of MCI using voice based on the technology developed by the University of Tokyo COI.

With the goal of developing an algorithm to identify cognitive levels based on voice, this joint research leverages the Group and our network of Group companies in working to collect and analyze the voice data, etc., of elderly persons that are essential for this research. In the future, we aim to commercialize the technology born through this project and put it to practical use in society.

Currently, I am taking the opportunity to gain a new perspective on aging societies from the stance of business, for example, by participating in the Society for Applied Gerontology-Japan. There is now a shift from extending healthy longevity and care to prevention, as well as innovations in the use of healthcare data, for example. But I intend to capture these changes as business opportunities and to become involved in industry, government and academia open innovation while at the same time providing products and services that support society.

A



04 05

1

Masako Kohei Masamoto Yamaguchi

Mitsui Sumitomo Primary Life InsuranceProduct Group, Product and Marketing Department General Manager

After joining Mitsui Sumitomo Insurance (current name) in 1993, she was responsible for product development, etc., in various underwriting departments and spent two years in the Production Department. She has held her current position since April 2014.

*Based on a system that reduces benefits paid to the deceased and transfers the reduced amount to the annuities of the living, those who live longer receive a larger annuity during their lives.

Mitsui Sumitomo Aioi Life InsuranceProduct Development Group, Product DepartmentManager

After joining Mitsui Sumitomo Insurance (current name) in 1988, he worked for InterRisk Research & Consulting and the Underwriting Department at Mitsui Sumitomo Insurance. He has held his current position since April 2016.

Social issues

Demand to address longevity risk and lifestyle diversification coinciding with longer average life spans

Solutions

Support asset formation for an era in which average life spans could reach 100 years, and provide products and services corresponding to funding needs

● Expansion of the sales market from providing products and services that capture diversifying needs

● Greater presence in OTC bank sales

● Securing financial assets and extension of asset longevity that helps provide a sense of post-retirement security

● More active seniors living fulfilling post-retirement lives



A growing number of elderly persons with dementia as society ages

Solutions

Provide support to detect early signs of cognitive decline and prevent functional decline

● Development of new insurance and services based on an industry, government and academia network

● Strengthened customer base because of regional revitalization

● A greater number of elderly persons enjoying independent lifestyles

● Revitalization of regional society● Lower future medical expenses and nursing care expenses

Elderly Data Collection Facility(Fureai Do-Life Services)

Japan’s society is aging at a pace unseen anywhere else in the world. Along with the continuous growth in the proportion of the total population over the age of 65, extending the healthy life expectancy associated with the increasing number of those over the age of 75 is also becoming an issue. The number of elderly persons with dementia has been growing steadily, and it is estimated that by 2025 nearly 7 million elderly persons, or roughly one in five, will have dementia. To realize a sustainable society within this environment, hopes are being placed on services that detect early signs of cognitive decline and provide measures to prevent functional decline at the stage before elderly persons develop dementia.





Impact on society

PI/MS Insurance Corporation is a joint venture between Mitsui Sumitomo Insurance and Bank of the Philippine Islands (BPI), one of the

largest banks in the Philippines, with which we engage closely. In 2016, BPI Direct BanKo (BanKo), a subsidiary of BPI, began providing small loans to self-employed micro-entrepreneurs. To broadly provide financial services to many people who would typically be unable to have access to bank services, BanKo launched 10 pilot branches in 2016 and expanded to 300 branches across the country in 2019.

In 2018, we proposed to BanKo to combine our microinsurance with their small loans upon receiving information about their branch network expansion and new loan product sales plan. We developed a product together with BanKo and launched loans bundled with the microinsurance product, “BanKo Secure Assist,” in November 2019. Although insurance claim amount is not large due to small premium of 75 pesos, the prompt receipt of the claim amount in the event of unexpected circumstances is very helpful for small-scale enterprises. This is because for those who run businesses as individuals, encountering personal accidents or damage to business property due to disasters can directly lead to interruption of their business’ operations and reduction of their earnings.

Upon launching this product, however, we faced many difficulties in securing product approval from the regulator and in organizing the internal process

Karen R. Abila

BPI/MS Insurance CorporationBPI Retail Sales Manager

She joined FGU Insurance, the predecessor of BPI/MS Insurance Corporation, in 1996 and was assigned to her current department in 2011. She has been involved in the microinsurance business since 2016.

flow. With repeated modifications aimed at simplifying and fast-tracking the process of insurance claim payment from a customer-focused perspective, we have implemented improvements to enable payment of claims within 10 days.

Although the Company has provided microinsurance for some time, we have expanded the distribution of this product by working with the bank to bundle microinsurance with loans, which makes it easy for the SEMEs to access. Roughly seven months after launching this service, as of May 31, 2020, we had already provided more than 45,000 policies, despite the impact of COVID-19.

Many SEMEs are engaged in business in the Philippines. According to a 2018 study by the Philippines Department of Trade and Industry, such enterprises account for a little under 90% of all commercial enterprises and employ a little under 30% of all workers in the country, thereby serving as a critical economic unit for the Philippines. Small loans and microinsurance support their businesses and contribute to the expansion of their business scale.

Supporting these businesses will help revitalize the economy of the Philippines, while instilling the use of financial services is expected to expand the insurance market.

B


07

Social issues

Insurance claim payments

Insurance for SEMEs is insufficient, which makes them vulnerable to business interruptions due to accidents and disasters

Solutions

Provide microinsurance by partnering with banks that offers small loans

● Expansion of microinsurance sales● Expansion of the market via the economic growth of SEMEs

● Strengthening the management of SEMEs● Revitalization of regional economies via the growth of SEMEs

● Accidental Death and Permanent Disablement

● Hospital Cash Assistance● Burial Cash Assistance● Property Cash Assistance(Fire, Earthquake, Flood, Typhoon)



In urban development, consideration for biodiversity is insufficient and the blessings of nature are not felt

● Expansion of the network between companies, governments, universities and NPOs engaged in improving the sustainability of natural capital

● Expansion of risk consulting opportunities regarding biodiversity and natural capital

● Expansion of green spaces that consider biodiversity, and reinforcement of multifaceted functions of nature

● Spreading awareness of coexistence with nature in society

Solutions

Establish an evaluation method and certification system to visualize the degree of consideration to biodiversity (coexistence with nature)

have been engaged in research and consulting related to business and biodiversity since 2000. At that time, people would ask me, “what is

biodiversity?” However, toward CBD COP10* in 2010, there was a growing interest in biodiversity in Japan. In 2008, the Japan Business Initiative for Biodiversity (JBIB), organized by voluntary companies, was established with the aim of internalizing biodiversity into corporate management. We are still involved in its management.

The government of France proposed the establishment of an ISO standard for biodiversity. However, it is necessary to provide easy-to-understand guidelines for biodiversity issues as compared to climate change, which can be evaluated solely by CO2. In 2011, the JBIB had already established guidelines and standards for corporate green spaces that take biodiversity into consideration. There were strong demands for certification using these standards, so we took part in the launch of the ABINC certification system following the establishment of the Association for Business Innovation in harmony with Nature and Community. In response to the excitement over ESG investment in the real estate field, the ABINC certification system is now recognized as a green building certification among global investors. Moreover, for the purpose of achieving the SDGs, we have also created the ABINC ADVANCE certification, which evaluates urban development projects that contribute to resolving issues through biodiversity. The first certified project is “HARUMI FLAG,” which utilizes the Olympic and Paralympic Village after the event.

“Resilient and Sustainable Society” is based on natural capital (biodiversity). The European business community, in particular, has begun expressing a sense of crisis and taking concrete action in this area; for example, “biodiversity loss and ecosystem collapse” was ranked as one of the top global risks at the Davos World Economic Forum in 2020. Since 2010, the MS&AD Insurance Group has focused on land use, which is an important aspect of the connection between business activities and natural capital, and has worked on the joint development of a method to visualize the degree of biodiversity consideration in corporate green spaces. In 2013, this concept expanded into the “Association for Business Innovation in harmony with Nature and Community® Certification System,” and we continue to be involved in its operation.

Implementing ABINC (Association for Business Innovation in harmony with Nature and Community®) certification system initiative

Providing microinsurance to support self-employed micro-entrepreneurs (SEMEs) in the Philippines

Under the initiative from the business world, both JBIB and ABINC serve as movements that facilitate dialogue with academic experts, environmental NPOs and other stakeholders, and by which companies and society collaborate to create guidelines for solutions to social issues through business. Although the Group also engages in consulting regarding biodiversity and has received many such consultations from corporate customers, we feel that our track record in and network for these guideline creation will contribute to relationship building that supports sustainable business activities.

I imagine that many people were healed by the green radiance of nearby forests and ripples of water in nearby ponds and rivers during the period of self-quarantine this past spring. Currently, discussions of post-COVID-19 community development are showing growing interest in green infrastructure that brings out the attractiveness of nature and its multifaceted functions. We feel that companies creating guidelines in cooperation with society is expected to become much more important in the development of communities in the future where public-private partnerships are anticipated. We will continue to evolve what we have learned from the ABINC certification system into mechanisms for promoting green infrastructure and creating new businesses that are coexisting with local nature.

I


06

Makoto Haraguchi

MS&AD InterRisk Research & Consulting, Inc.Fellow

He has held his current position since December 1996. Advisor to JBIB(Japan Business Initiative for Biodiversity), Advisor, of ABINC(Association for Business Innovation in harmony with Nature and Community). Vice Chairman.

Mitsui Sumitomo Insurance Surugadai Building and Surugadai New Annex Green Spaces which have received the ABINC Certification

Department members prepare “BanKo Secure Assist” forms for sending

Related SDGs　　： Clean water and sanitation


　　　　　　　　： Life on land

61115

Related SDGs　　： No poverty

　　　　　　　　： Zero hunger

　　　　　　　　： Industry, innovation and infrastructure

129

*The 10th meeting of the Conference of the Parties to the Convention on Biological Diversity held in Aichi Prefecture in 2010



Impact on society

PI/MS Insurance Corporation is a joint venture between Mitsui Sumitomo Insurance and Bank of the Philippine Islands (BPI), one of the

largest banks in the Philippines, with which we engage closely. In 2016, BPI Direct BanKo (BanKo), a subsidiary of BPI, began providing small loans to self-employed micro-entrepreneurs. To broadly provide financial services to many people who would typically be unable to have access to bank services, BanKo launched 10 pilot branches in 2016 and expanded to 300 branches across the country in 2019.

In 2018, we proposed to BanKo to combine our microinsurance with their small loans upon receiving information about their branch network expansion and new loan product sales plan. We developed a product together with BanKo and launched loans bundled with the microinsurance product, “BanKo Secure Assist,” in November 2019. Although insurance claim amount is not large due to small premium of 75 pesos, the prompt receipt of the claim amount in the event of unexpected circumstances is very helpful for small-scale enterprises. This is because for those who run businesses as individuals, encountering personal accidents or damage to business property due to disasters can directly lead to interruption of their business’ operations and reduction of their earnings.

Upon launching this product, however, we faced many difficulties in securing product approval from the regulator and in organizing the internal process

The SDGs aim to realize a world in which no one is left behind from the development of society. One of the core issues in achieving SDGs is the concept of “financial inclusion,” which enables all people to access financial services. There are still many people throughout the world who are unable to have a bank account, but access to financial services would allow them to safely manage financial assets, start companies and easily expand their business. As an insurance product that is provided to the low-income group at low cost, microinsurance is expected to become more widespread because it mitigates the degree of loss for vulnerable individuals in the event of unexpected circumstances. Furthermore, microinsurance enables a person to be more financially independent.

Karen R. Abila

BPI/MS Insurance CorporationBPI Retail Sales Manager

She joined FGU Insurance, the predecessor of BPI/MS Insurance Corporation, in 1996 and was assigned to her current department in 2011. She has been involved in the microinsurance business since 2016.

flow. With repeated modifications aimed at simplifying and fast-tracking the process of insurance claim payment from a customer-focused perspective, we have implemented improvements to enable payment of claims within 10 days.

Although the Company has provided microinsurance for some time, we have expanded the distribution of this product by working with the bank to bundle microinsurance with loans, which makes it easy for the SEMEs to access. Roughly seven months after launching this service, as of May 31, 2020, we had already provided more than 45,000 policies, despite the impact of COVID-19.

Many SEMEs are engaged in business in the Philippines. According to a 2018 study by the Philippines Department of Trade and Industry, such enterprises account for a little under 90% of all commercial enterprises and employ a little under 30% of all workers in the country, thereby serving as a critical economic unit for the Philippines. Small loans and microinsurance support their businesses and contribute to the expansion of their business scale.

Supporting these businesses will help revitalize the economy of the Philippines, while instilling the use of financial services is expected to expand the insurance market.

B


07

Social issues

Insurance claim payments

Insurance for SEMEs is insufficient, which makes them vulnerable to business interruptions due to accidents and disasters

Solutions

Provide microinsurance by partnering with banks that offers small loans

● Expansion of microinsurance sales● Expansion of the market via the economic growth of SEMEs

● Strengthening the management of SEMEs● Revitalization of regional economies via the growth of SEMEs

● Accidental Death and Permanent Disablement

● Hospital Cash Assistance● Burial Cash Assistance● Property Cash Assistance(Fire, Earthquake, Flood, Typhoon)



In urban development, consideration for biodiversity is insufficient and the blessings of nature are not felt

● Expansion of the network between companies, governments, universities and NPOs engaged in improving the sustainability of natural capital

● Expansion of risk consulting opportunities regarding biodiversity and natural capital

● Expansion of green spaces that consider biodiversity, and reinforcement of multifaceted functions of nature

● Spreading awareness of coexistence with nature in society

Solutions

Establish an evaluation method and certification system to visualize the degree of consideration to biodiversity (coexistence with nature)

have been engaged in research and consulting related to business and biodiversity since 2000. At that time, people would ask me, “what is

biodiversity?” However, toward CBD COP10* in 2010, there was a growing interest in biodiversity in Japan. In 2008, the Japan Business Initiative for Biodiversity (JBIB), organized by voluntary companies, was established with the aim of internalizing biodiversity into corporate management. We are still involved in its management.

The government of France proposed the establishment of an ISO standard for biodiversity. However, it is necessary to provide easy-to-understand guidelines for biodiversity issues as compared to climate change, which can be evaluated solely by CO2. In 2011, the JBIB had already established guidelines and standards for corporate green spaces that take biodiversity into consideration. There were strong demands for certification using these standards, so we took part in the launch of the ABINC certification system following the establishment of the Association for Business Innovation in harmony with Nature and Community. In response to the excitement over ESG investment in the real estate field, the ABINC certification system is now recognized as a green building certification among global investors. Moreover, for the purpose of achieving the SDGs, we have also created the ABINC ADVANCE certification, which evaluates urban development projects that contribute to resolving issues through biodiversity. The first certified project is “HARUMI FLAG,” which utilizes the Olympic and Paralympic Village after the event.

“Resilient and Sustainable Society” is based on natural capital (biodiversity). The European business community, in particular, has begun expressing a sense of crisis and taking concrete action in this area; for example, “biodiversity loss and ecosystem collapse” was ranked as one of the top global risks at the Davos World Economic Forum in 2020. Since 2010, the MS&AD Insurance Group has focused on land use, which is an important aspect of the connection between business activities and natural capital, and has worked on the joint development of a method to visualize the degree of biodiversity consideration in corporate green spaces. In 2013, this concept expanded into the “Association for Business Innovation in harmony with Nature and Community® Certification System,” and we continue to be involved in its operation.

Implementing ABINC (Association for Business Innovation in harmony with Nature and Community®) certification system initiative

Providing microinsurance to support self-employed micro-entrepreneurs (SEMEs) in the Philippines

Under the initiative from the business world, both JBIB and ABINC serve as movements that facilitate dialogue with academic experts, environmental NPOs and other stakeholders, and by which companies and society collaborate to create guidelines for solutions to social issues through business. Although the Group also engages in consulting regarding biodiversity and has received many such consultations from corporate customers, we feel that our track record in and network for these guideline creation will contribute to relationship building that supports sustainable business activities.

I imagine that many people were healed by the green radiance of nearby forests and ripples of water in nearby ponds and rivers during the period of self-quarantine this past spring. Currently, discussions of post-COVID-19 community development are showing growing interest in green infrastructure that brings out the attractiveness of nature and its multifaceted functions. We feel that companies creating guidelines in cooperation with society is expected to become much more important in the development of communities in the future where public-private partnerships are anticipated. We will continue to evolve what we have learned from the ABINC certification system into mechanisms for promoting green infrastructure and creating new businesses that are coexisting with local nature.

I


06

Makoto Haraguchi

MS&AD InterRisk Research & Consulting, Inc.Fellow

He has held his current position since December 1996. Advisor to JBIB(Japan Business Initiative for Biodiversity), Advisor, of ABINC(Association for Business Innovation in harmony with Nature and Community). Vice Chairman.

Mitsui Sumitomo Insurance Surugadai Building and Surugadai New Annex Green Spaces which have received the ABINC Certification

Department members prepare “BanKo Secure Assist” forms for sending

Related SDGs　　： Clean water and sanitation


　　　　　　　　： Life on land

61115

Related SDGs　　： No poverty

　　　　　　　　： Zero hunger

　　　　　　　　： Industry, innovation and infrastructure

129

*The 10th meeting of the Conference of the Parties to the Convention on Biological Diversity held in Aichi Prefecture in 2010




Compared to the previous year, more of the initiatives during the second year of the Sustainability Contest had a track record, and more of the initiatives showed a deeper understanding of the SDGs and looked at how to apply and reflect this understanding in the entrant’s work in practice. I felt that all the entrants had made steady progress in tackling social issues through CSV initiatives in cooperation with various stakeholders. As these activities advance further, I anticipate that entries based on completely new ideas will emerge during the next fiscal year.

40,000 Group Employees Engaged in CSV

Social impact● The initiative exhibits new concepts or new approaches● The initiative produces a large ripple effect in solving social issues

Communication● The initiative is held in collaboration with stakeholders**Customers, shareholders, agents, business partners, employees, local communities/international society, environment

Group synergy● The initiative is described in one’s own words as a “Value Creation Story”● The initiative contributes to greater value for the Group (not only economic value but also quality improvements, human assetsdevelopment and other value)

Approach● The initiative is proactively planned by the entrants● The initiative considers opinions from various standpoints (including diversity and inclusion)

Expanding possibilities● The initiative is expected to see future expansion● The initiative will serve broadly as a model within the Group

The Sustainability Contest 2019

Winners

309

2 groupsAwards for excellence

7groups

22

Mika Yamanokawa

MS&AD Insurance Group HoldingsSustainability Section, Corporate Planning DepartmentGeneral Manager

Mariko BandoOutside Director　

I felt that each group truly thought deeply as they worked on their entry and that CSV initiatives have started to spread through the Group as a practical approach. The significance of companies is not just economic value (earnings capacity and operating profit). In addition, I feel that their goals lie in the degree to which they are needed by society and whether their activities improve society. The fact that the Group’s employees around the world are actively engaged in CSV will greatly contribute to the expansion of the MS&AD Group's corporate value.

〈 Applications 〉〈 Overseas applications 〉

To instill the understanding that creating shared value with customers (CSV initiatives) is important to become a sustainable company into the awareness and business activities of each and every employee, the MS&AD Insurance Group has held the Group-wide “Sustainability Contest” since fiscal 2018. We selected awards for excellence from among the initiative cases that connect to the sustainability of society and the Group, as well as to CSV, through the tasks and business activities employees engage in every day. Moreover, we held presentations to select the winners as part of the contest. Although fewer entrants participated than last year, the quality of the initiatives was far higher. We will continue these efforts to firmly establish the concept of creating shared value with customers using the SDGs as our leading marks.

Selection criteria

Entrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant StatusEntrant Status

Mitsui Sumitomo InsuranceEstablishing the “Nagano Model” for SDG-Based Regional Revitalization

Nagano Prefecture encourages the growth of local SMEs engaged in the SDGs as a means of promoting regional economic revitalization initiatives. Providing the SDGs expertise and know-how held by the Group contributes to regional revitalization in Nagano Prefecture. (⇒ See P. 69 for details)

Mitsui Sumitomo InsuranceDeveloping “Japanese Sake Manufacturer Insurance”

Developed a special insurance product for Japanese sake manufacturers that broadly covers quality degradation unique to Japanese sake and risks that exist at every stage, from raw material procurement to preparation, storage, shipment and logistics. In addition to protecting sake breweries from unexpected circumstances, this insurance contributes to reinforcement of the foundation and sustainable growth of regional industries.

Aioi Nissay Dowa InsuranceImplementing Initiatives for Realizing an “Inclusive Multicultural Society” in Cooperation with Local Governments

Formed a Regional Comprehensive Partnership Agreement with Toyohashi City, which is home to many foreign residents. This partnership contributes to safe, secure community development that goes beyond culture and nationality by having Brazilian trainees and Filipino trainees at the Mikawa Branch hold “Traffic Safety Seminars” in Portuguese and Tagalog, respectively.

Mitsui Direct General InsuranceContributing to our Greater Corporate Value by Strengthening Customer Contact Points through a Fusion of "Digital" and "In Person"

Improved customer satisfaction and acquired a five-star HDI rating by incorporating greater smartphone operability (= smartphone first), better telephone service quality and customer service Internet tools, chatbots and other cutting-edge digital functions.

Mitsui Sumitomo Aioi Life InsuranceFocusing on the Importance of “Pre-symptomatic”Awareness! Deploying a Joint Kanagawa Prefecture, Agent and MSI Aioi Life Awareness Campaign for Community Members

Launched an initiative to extend healthy life expectancies based on the desire to support “good health and longevity” in anticipation of an era in which average life spans could reach 100 years. This initiative actively promotes a “pre-symptomatic” awareness campaign among community members through a private-public partnership.

Mitsui Sumitomo Primary Life InsuranceProviding Annuity Solutions Covering Longevity Risk-Supplying and Consulting on Tontine Annuities-

“Tontine annuities” create the social value of “realizing safe, secure post-retirement lives” through its “products,” as well as the “annuity preparation consulting” in the sales process. Following the industry’s first lump-sum payment foreign currency denominated tontine annuity, this move contributed to Group profits by deploying a level premium payment version and an updated lump-sum payment version.

InterRisk Research & ConsultingExhibiting Group Synergy in the “Cyber Security Support Team (Aichi Prefecture)”

Promoted the “Demonstration Project for Building a Cyber Security Support System that Can Be Easily Accessed by SMEs” (also called the “Cyber Security Support Team”) organized by the Ministry of Economy, Trade and Industry and the Information-technology Promotion Association, Japan (IPA), in Aichi Prefecture. This project developed an insurance and risk service suited to SMEs to realize a higher level of cybersecurity among Japan’s SMEs.

In i t iat ive themes Outl ine of the various init iat ives

Aioi Nissay Dowa Insurance

Winner

The “cmap.dev” website was developed to forecast the number of buildings damaged by typhoons, heavy rains and earthquakes. Ascertaining damage status in real time allows for a swift response that offers appropriate support activities for victims and contributes to the recovery of local communities. (⇒See P. 30 for related content)

We feel that insurance companies are closely connected to the SDGs. In particular, claim service departments are directly linked to disasters through insurance claims payments. In this respect, cmap.dev emerged when we considered if there was something we could do. We hope that all Group employees have confidence in contributing to customers, society and communities through our business.

●Winner comment

Launching “cmap.dev,” the World’s First Real-Time Damage Forecasting Website

Award for Excellence

Mitsui Sumitomo Insurance

Winner

Partnered with EPIC Homes, a social enterprise and designed a dedicated fire insurance product specially created for the Orang Asli’s homes built by EPIC Homes. This enables the corporate sponsors/partners of EPIC Homes to sponsor the insurance for uninsured homes, thereby contributing to the longevity and sustainability of these projects by protecting their sponsored funds, as well as giving the residents a peace of mind.

Through our partnership with EPIC Homes, we have been able to develop a dedicated insurance product that enables us to provide fire insurance to the underserved. Contributing to solving social issues highly motivates our employees, and we look to continue playing our part in building a sustainable society.

●Winner comment

Providing Fire Insurance for Special Housing for Indigenous Peoples～Promoting Initiatives that Leave No One Behind～

“Sustainability Contest 2019” winning efforts




Compared to the previous year, more of the initiatives during the second year of the Sustainability Contest had a track record, and more of the initiatives showed a deeper understanding of the SDGs and looked at how to apply and reflect this understanding in the entrant’s work in practice. I felt that all the entrants had made steady progress in tackling social issues through CSV initiatives in cooperation with various stakeholders. As these activities advance further, I anticipate that entries based on completely new ideas will emerge during the next fiscal year.

40,000 Group Employees Engaged in CSV

Social impact● The initiative exhibits new concepts or new approaches● The initiative produces a large ripple effect in solving social issues

Communication● The initiative is held in collaboration with stakeholders**Customers, shareholders, agents, business partners, employees, local communities/international society, environment

Group synergy● The initiative is described in one’s own words as a “Value Creation Story”● The initiative contributes to greater value for the Group (not only economic value but also quality improvements, human assetsdevelopment and other value)

Approach● The initiative is proactively planned by the entrants● The initiative considers opinions from various standpoints (including diversity and inclusion)

Expanding possibilities● The initiative is expected to see future expansion● The initiative will serve broadly as a model within the Group

The Sustainability Contest 2019

Winners

309

2 groupsAwards for excellence

7groups

22

Mika Yamanokawa

MS&AD Insurance Group HoldingsSustainability Section, Corporate Planning DepartmentGeneral Manager

Mariko BandoOutside Director　

I felt that each group truly thought deeply as they worked on their entry and that CSV initiatives have started to spread through the Group as a practical approach. The significance of companies is not just economic value (earnings capacity and operating profit). In addition, I feel that their goals lie in the degree to which they are needed by society and whether their activities improve society. The fact that the Group’s employees around the world are actively engaged in CSV will greatly contribute to the expansion of the MS&AD Group's corporate value.

〈 Applications 〉〈 Overseas applications 〉

To instill the understanding that creating shared value with customers (CSV initiatives) is important to become a sustainable company into the awareness and business activities of each and every employee, the MS&AD Insurance Group has held the Group-wide “Sustainability Contest” since fiscal 2018. We selected awards for excellence from among the initiative cases that connect to the sustainability of society and the Group, as well as to CSV, through the tasks and business activities employees engage in every day. Moreover, we held presentations to select the winners as part of the contest. Although fewer entrants participated than last year, the quality of the initiatives was far higher. We will continue these efforts to firmly establish the concept of creating shared value with customers using the SDGs as our leading marks.

Mitsui Sumitomo InsuranceEstablishing the “Nagano Model” for SDG-Based Regional Revitalization

Nagano Prefecture encourages the growth of local SMEs engaged in the SDGs as a means of promoting regional economic revitalization initiatives. Providing the SDGs expertise and know-how held by the Group contributes to regional revitalization in Nagano Prefecture. (⇒ See P. 69 for details)

Mitsui Sumitomo InsuranceDeveloping “Japanese Sake Manufacturer Insurance”

Developed a special insurance product for Japanese sake manufacturers that broadly covers quality degradation unique to Japanese sake and risks that exist at every stage, from raw material procurement to preparation, storage, shipment and logistics. In addition to protecting sake breweries from unexpected circumstances, this insurance contributes to reinforcement of the foundation and sustainable growth of regional industries.

Aioi Nissay Dowa InsuranceImplementing Initiatives for Realizing an “Inclusive Multicultural Society” in Cooperation with Local Governments

Formed a Regional Comprehensive Partnership Agreement with Toyohashi City, which is home to many foreign residents. This partnership contributes to safe, secure community development that goes beyond culture and nationality by having Brazilian trainees and Filipino trainees at the Mikawa Branch hold “Traffic Safety Seminars” in Portuguese and Tagalog, respectively.

Mitsui Direct General InsuranceContributing to our Greater Corporate Value by Strengthening Customer Contact Points through a Fusion of "Digital" and "In Person"

Improved customer satisfaction and acquired a five-star HDI rating by incorporating greater smartphone operability (= smartphone first), better telephone service quality and customer service Internet tools, chatbots and other cutting-edge digital functions.

Mitsui Sumitomo Aioi Life InsuranceFocusing on the Importance of “Pre-symptomatic”Awareness! Deploying a Joint Kanagawa Prefecture, Agent and MSI Aioi Life Awareness Campaign for Community Members

Launched an initiative to extend healthy life expectancies based on the desire to support “good health and longevity” in anticipation of an era in which average life spans could reach 100 years. This initiative actively promotes a “pre-symptomatic” awareness campaign among community members through a private-public partnership.

Mitsui Sumitomo Primary Life InsuranceProviding Annuity Solutions Covering Longevity Risk-Supplying and Consulting on Tontine Annuities-

“Tontine annuities” create the social value of “realizing safe, secure post-retirement lives” through its “products,” as well as the “annuity preparation consulting” in the sales process. Following the industry’s first lump-sum payment foreign currency denominated tontine annuity, this move contributed to Group profits by deploying a level premium payment version and an updated lump-sum payment version.

InterRisk Research & ConsultingExhibiting Group Synergy in the “Cyber Security Support Team (Aichi Prefecture)”

Promoted the “Demonstration Project for Building a Cyber Security Support System that Can Be Easily Accessed by SMEs” (also called the “Cyber Security Support Team”) organized by the Ministry of Economy, Trade and Industry and the Information-technology Promotion Association, Japan (IPA), in Aichi Prefecture. This project developed an insurance and risk service suited to SMEs to realize a higher level of cybersecurity among Japan’s SMEs.

In i t iat ive themes Outl ine of the various init iat ives

Aioi Nissay Dowa Insurance

Winner

The “cmap.dev” website was developed to forecast the number of buildings damaged by typhoons, heavy rains and earthquakes. Ascertaining damage status in real time allows for a swift response that offers appropriate support activities for victims and contributes to the recovery of local communities. (⇒See P. 30 for related content)

We feel that insurance companies are closely connected to the SDGs. In particular, claim service departments are directly linked to disasters through insurance claims payments. In this respect, cmap.dev emerged when we considered if there was something we could do. We hope that all Group employees have confidence in contributing to customers, society and communities through our business.

●Winner comment

Launching “cmap.dev,” the World’s First Real-Time Damage Forecasting Website

Award for Excellence

Mitsui Sumitomo Insurance

Winner

Partnered with EPIC Homes, a social enterprise and designed a dedicated fire insurance product specially created for the Orang Asli’s homes built by EPIC Homes. This enables the corporate sponsors/partners of EPIC Homes to sponsor the insurance for uninsured homes, thereby contributing to the longevity and sustainability of these projects by protecting their sponsored funds, as well as giving the residents a peace of mind.

Through our partnership with EPIC Homes, we have been able to develop a dedicated insurance product that enables us to provide fire insurance to the underserved. Contributing to solving social issues highly motivates our employees, and we look to continue playing our part in building a sustainable society.

●Winner comment

Providing Fire Insurance for Special Housing for Indigenous Peoples～Promoting Initiatives that Leave No One Behind～

“Sustainability Contest 2019” winning efforts




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